WHEN IT ADDS UP, WE DON’T LIKE IT !!

WHEN IT ADDS UP, WE DON’T LIKE IT !!

If you take a closer look at the Mosman property market there are some clear signs emerging and most will agree it was only a matter of time. We are now confronted with a timing issue, the reality being that the market has been trading for an unprecedented amount of time, and the wear and tear is emerging. Given that we have enjoyed a strong market since 1996, it now becomes as clear as day that the volume of houses is diminishing to record levels. The general rule of thumb is that ten per cent of houses in Mosman trade, on average, annually. Now there is anecdotal evidence that this number is dropping marginally below five per cent as the market has all but completed a full spectrum. The simple reality is that all those who have actively participated in the property market over the last nine years have no intention of selling their homes in the foreseeable future. It is not just the real estate agents who will need to implement new strategies, the Fairfax(s) and Cumberland(s) of this world will need to adjust and create affordable advertising rates so that the properties at the lower end become a greater source of income. No longer can they rely on houses to fill their ‘rivers of gold’ because if they do, those rivers will start looking like our very own Warragamba Dam.

You only need to look at the volume of new property being offered after the April selling break to see that the numbers are well and truly down on past years. This all but guarantees that property prices will continue to remain constant, as demand will not get within a bulls roar of supply. This brings us to next week’s meeting of The Reserve Bank of Australia where once again there will not be an increase in rates. Given the key inflation data which was seen as a positive sign for property markets when the Australian Bureau of Statistics released it, most now agree that it will be many months before we see any rate movement. We are of the opinion that the next few weeks will see strong market activity (for those who are carrying properties) as enquiry levels are currently very strong. With our Apartment Division, the great news is that investors are coming back into the market at a rate of knots. Just takes a correction with the share market and they come running back in droves. Of the seven apartments that are currently awaiting exchange, four are going to investors. Just the one home sold this week with 10 Ryries Parade Cremorne selling for $3,200,000 which is a new street record.

It would not be a version of ‘Virtual Realty News’ without a ‘Bobby Dazzler’ update and now it appears that Peter Beattie has our ‘State of Decay’ firmly in his sights. With ‘Peter Peter Bob Carr Eater’ joining other states in abolishing taxes, he then went on to boast that there are plenty of NSW residents buying white shoes and moving to Queensland. He also said, “I’m sorry Bob [Carr], but the reality is that we manage our books well”. The final nail in the coffin appeared in the weekend edition of The Financial Review, where he ran a whole page advertisement “Smart Queensland Creating the Future.” He then went on to say ” It’s all happening in Queensland. Our State is the magnet for jobs and people, our education system is world-class, and our economy is Australia’s strongest.”

At a recent ‘open for inspection’ I was chatting with a Dealer Principal of one of the largest Holden dealerships, and he confirmed that the Queensland dealerships were leading and blitzing the new car sales, as there are plenty of skilled workers moving north in search of new lifestyles.

We have managed to iron out the glitches we had with the new website and you will notice quite a few changes which we are pleased to say are for the better www.rwm.com.au . Interesting, given that April is a quiet month, with the school holidays, we have absolutely smashed our all time record for website activity which we will reveal next week. If you want to see the new property we have just added you are in the right place because we are carrying the majority of new properties on offer. Cheers ^__^

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